[Executive Corner] Insight Relations: Paving the Way for LG’s Future Vision
-
Similar Topics
-
By News Reporter
In this installment of On the Job, we explore LG’s IR Division and their efforts to communicate with key stakeholders, sharing progress updates and future plans to enhance the company’s value.
Effective investor relations (IR) are critical to a company’s success, fostering transparency by providing clear and accurate information to investors, analysts and other stakeholders. The role of IR professionals is evolving globally to encompass important corporate functions including sustainability. Rather than merely serving as liaisons between the organization and the financial community, IR teams are increasingly becoming strategic partners, playing a vital role in advancing Environmental, Social and Governance (ESG) initiatives that go beyond traditional sustainability reporting.
As a company that has always prioritized transparent communications with customers or investors alike, LG has carefully constructed a highly skilled team of IR practitioners. In this installment of On the Job, we get an “up close” look at LG’s IR Division to learn about their tasks, the challenges they face and what motivates them to excel in their field.
The primary mission of an IR organization is to ensure fair business valuation, create an environment conducive to raising funds through capital markets and maintain a stable shareholder base.
“To achieve this, our Division handles a range of tasks, from responding to investors and overseeing corporate disclosures to announcing earnings and conducting business briefings and shareholder meetings,” said Park Won-jae, head of IR Division at LG Electronics.
IR activities can be broadly categorized into three main areas: enhancing capital market integrity by ensuring compliance with relevant regulations and laws in information sharing; communicating with investors about the company’s management status, strategies and vision through corporate presentations and conferences; and collaborating with related organizations, such as finance, to establish shareholder return policies like dividends or share buybacks to enhance shareholder value.
LG’s IR Division consists of the IR Planning Team and the IR Communications Team. The IR Communications Team focuses on managing interactions with Korean and international investors and handling activities that require a high level of external engagement. Meanwhile, the IR Planning Team oversees policy-related tasks, such as company information disclosures and shareholder meetings.
Given that each team handles different types of tasks with varying scopes of collaboration and expected outcomes, team members need to possess skills and expertise tailored to their specific responsibilities.
“Members of the IR Planning Team must possess a strong awareness of compliance and a thorough understanding of relevant systems and regulations,” stated Lee Seung-ju, head of the IR Planning Team. “In contrast, the IR Communications Team requires exceptional communication skills, as their role involves extensive interaction with both Korean and global investors.” Additionally, it is crucial for members of both teams to have a comprehensive understanding of capital markets, the industry landscape and the various segments of the company’s operations.
The daily routines of LG’s IR Division members are significantly influenced by the time of year. “Our work follows a distinct cycle that typically aligns with quarterly, semi-annual and annual financial reporting schedules,” explained Kim Seung-hyun, head of the IR Communication Team. “Key recurring tasks include annual events such as the general shareholder meeting, quarterly earnings announcements and Non-Deal Roadshows (NDRs).* As these dates approach, our focus shifts to organizing these events.”
For instance, quarterly earnings announcements are generally shared in late April, July, October and January. “In the roughly 20 days leading up to these announcements, we collaborate closely with various organizations across business units to shape the company’s message to the market,” explained Kim. “We carefully consider how this information might impact our stakeholders once it becomes public.”
The annual general shareholder meeting also demands significant attention, as the IR teams must adhere to strict legal procedures under Korea’s Commercial Act. “We typically begin preparations in the fourth quarter for a meeting scheduled for next March, where we will discuss the previous year’s financial results,” added Lee.
In contrast to these predictable, routine activities, the capital markets are constantly evolving, necessitating flexibility and precision in communications and shareholder policy. “Since we are influenced by external variables, our non-routine tasks often involve new or unfamiliar situations, making IR work highly dynamic,” said Kim.
Skilled, creative and highly dedicated, LG’s IR Division has garnered recognition for its stellar work and commitment to transparent communications. Recently, the Division was honored with the Financial Services Commission Chairman’s Award (Grand Prize) at the 2024 Korea IR Awards hosted by the Korea Investor Relations Service. This accolade is not their first; they received the Grand Prize in the Corporate category in 2021 and the IR Council Chairman’s Award (Excellence Award) last year. This recognition is particularly meaningful as corporate value enhancement has become a key focus in global capital markets. LG has been acknowledged by capital market authorities and experts from various fields for its ongoing efforts to communicate with the market in a structured and sincere manner.
LG’s IR Division has been actively incorporating Future Vision 2030, the company’s mid- to long-term strategic direction, into investor communications. With this far-reaching vision, LG aims to drive sustainable growth by transitioning to a future-oriented business model while building on the world-class competitiveness and expertise it has developed over decades in core businesses such as home appliances. The IR Division’s consistent and genuine commitment to enhancing both corporate and shareholder value has been widely praised.
Since the Future Vision 2030 announcement last July, the company has bolstered external communications around business performance and direction. At major IR events, such as the general shareholder meeting, corporate presentations for international investors and investor forums, top LG executives – including the CEO and CFO – have engaged directly with the market in an open, transparent manner. Starting this year, LG has elevated its regular earnings conference calls. Previously led by IR and business unit management executives, the calls are now directly managed by the CFO.
Additionally, early this year, LG announced a new three-year dividend policy to improve shareholder value, featuring an increased payout ratio, a minimum annual dividend and semi-annual dividend payouts. In August, LG led Korea’s top 10 conglomerates by pre-announcing a value-up program focused on enhancing enterprise value. Then, on October 22, LG unveiled its “Corporate Value Enhancement Plan,” integrating its Future Vision 2030 with additional shareholder initiatives, including a target return on equity (ROE) of 10 percent or higher by 2027. Future actions under consideration include canceling existing treasury shares, additional share buybacks and potentially adopting quarterly dividends.
“Through these steps, we’re consistently demonstrating a sincere and proactive commitment to both corporate and shareholder value enhancement,” explained Lee.
Corporate value isn’t just about the numbers on financial statements; it also includes intangibles like future growth potential, the company’s image and brand value. “We have the major responsibility of representing LG Electronics and communicating its true corporate value to the market,” noted Kim. “We strive to be a model IR organization – one that embodies professionalism, passion and authenticity.”
Stay tuned to
link hidden, please login to view to learn more about other teams and roles at LG Electronics. # # #
* Non-Deal Roadshow (NDR) is an activity where a company’s management meets with investors, analysts and other stakeholders to provide insights into the company’s business strategy, financial performance and future outlook. Unlike a Deal Roadshow (DR), which is focused on promoting a specific securities offering or transaction, NDRs can be seen as an IR activity targeting existing shareholders.
-
By News Reporter
In its pursuit of automotive solutions that prioritize safety and reliability, LG has achieved several impressive milestones in the automotive security space. In August, the company’s Vehicle to Everything (V2X) solution for Volkswagen
link hidden, please login to view. This certification confirms that LG’s VW Transceiver Module and V2X technology offer comprehensive protection against unauthorized access or interference and comply with global IT security standards.
At the 5G Automotive Association (5GAA) conference in Berlin, Germany, from October 21-24, LG introduced its latest innovations in future mobility: “Soft V2X” and “Smart Roadside Units (RSU).” This integrated traffic safety solution leverages V2X technology to collect and anonymize data, such as the location, direction and speed of pedestrians and vehicles. This data is shared and analyzed in real-time via the Soft V2X Cloud and various devices equipped with Soft V2X software, allowing for timely alerts to users regarding potential dangers. In addition, Soft V2X collaborates with Smart RSUs to provide essential safety information like traffic conditions, potential hazards and signals timings. The software is engineered for compatibility with a range of autonomous vehicles and delivery robots, opening up possibilities for future mobility applications.
LG is leading the development of Soft V2X and Smart RSU, utilizing the results of these validations as a foundation to evolve toward Harmonized V2X. LG is continuously strengthening and maintaining its leadership by proposing the technological direction and validating every step of the way. Through these advancements, LG engaged with global companies at the conference, encouraging them to join in this strategic journey. The company outlined the steps toward Harmonized V2X, emphasizing its practicality and efficiency. Many global companies resonated with this vision, positioning the commercialization of V2N services as a top priority on the 5GAA roadmap.
During the conference, LG offered attendees a firsthand experience of its integrated safety solutions in real-world conditions by inviting them to ride in vehicles and shuttles along a 5.6-kilometer stretch of road in Berlin equipped with various V2X technologies. A video demonstration illustrated the numerous use cases and technologies involved.
The demonstration showcased how the system enhances road safety. For example, if a pedestrian, cyclist and driver all use the Soft V2X app, the applications can detect each other and share anonymized information. This allows the driver to receive alerts to slow down if a pedestrian or cyclist is approaching a crosswalk (or jaywalking) at high speed. The app also provides real-time updates about approaching emergency vehicles or construction work, enabling the driver to adjust their route for a more efficient journey. Even in situations where a pedestrian is not using the app, the vehicle’s application can still receive data from surrounding Smart RSUs to notify the driver.
In Berlin, Kim Hak-seong, leader of Advanced V2X Task at LG Electronics, presented “Steps Forward for V2X Evolution,” focusing on pilot projects making school and kindergarten zones safer in South Korea.
LG is also ensuring global compliance for seamless market integration. The company is well-designed to meet global standards, enabling seamless, sustainable and scalable market expansion. It complies with European Telecommunications Standards Institute (ETSI) standards for the European region, as well as Society of Automotive Engineers (SAE) standards for the North American region.
As a founding member of the 5GAA, LG collaborates with leading global automakers, telecommunications companies and automotive component manufacturers to develop autonomous driving and traffic safety technologies.
With Soft V2X and Smart RSU technologies as cornerstones for future connected mobility V2X solutions, LG is continuously pursuing the next step, known as Hybrid V2X. This involves integrating V2X direct communication with V2X network communication to improve various aspects such as coverage extension, high reliability, scalable architecture, versatile devices and various vertical industries.
To extend its lead in the global market, LG continues to introduce new and improved traffic safety and autonomous driving solutions, including Soft V2X. This underlines the company’s commitment to realizing innovative solutions that not only bolster people’s safety today but also bring future mobility closer to fruition.
Stay tuned to the to learn about the countless ways its latest technologies are changing the world for the better.
# # #
-
By News Reporter
As smart home and electrification technologies emerge as key trends in the home appliance sector, we are seeing an industry-wide shift away from simple product sales to a more service-oriented business model.
Smart home technology simplifies the management of complex devices through a range of helpful automation features. By utilizing insights gained from home appliances and Internet of Things (IoT) sensors, the latest smart home tech can better understand customer’s lifestyles and needs. This, in turn, enables the delivery of proactive, tailored services that reduce the burden of household chores. As the technology advances, we move closer to the realization of what LG calls the Zero Labor Home.
*This image is designed to aid understanding of a smart home solution that connects and controls devices within the home (Image Source: Feepik)
Smart home solutions have become a major focus not only for appliance manufacturers but also for IoT, telecommunications, construction and big tech companies. The introduction of smart home standards or protocols, such as Matter,1 is enhancing connectivity between appliances, IoT devices and home systems. Moreover, generative artificial intelligence (AI) and ambient computing2 technologies are making it possible for users to control devices and services through voice commands alone, saving them time and making life at home far more convenient.
*This image was created to aid understanding
One of the leaders in this space, LG recently introduced its latest AI Home solution, offering users the ability to control their home appliances and IoT devices through conversational voice commands. FURON, LG’s generative AI agent and the brain of the AI Home, is able to learn and remember users’ preferences for various devices and apply the appropriate settings in the given situation. Furthermore, LG AI Home connects seamlessly with appliances and IoT devices from a growing number of global brands and integrates flawlessly with various types of apps through ThinQ ON, LG’s AI home hub. The company is continuing to expand its AI Home ecosystem to offer users a broader range of smart home solutions and services.
The transition from fossil fuel to electricity-powered products is a significant global trend – one that is expected to accelerate due to the enforcement of international regulations aimed at mitigating global warming. Boilers are rapidly being replaced by heat pump heating systems, gas ranges by induction cooktops and gas dryers by heat pump dryers. Against this backdrop, LG is actively strengthening its research and development (R&D) programs to discover more efficient and reliable heat pump technologies. These efforts include the recent completion of the company’s “global R&D triangle” to create specialized solutions for cold climates, and the hosting of the Global Heat Pump Consortium, which was founded by LG in collaboration with international universities.
*This image was created to aid understanding
Moving forward, electrification technology will evolve into smart home energy solutions that optimize energy generation, storage and usage within the home. Ultimately, this evolution will give rise to living environments whose occupants can enjoy convenient cooking, heating and cooling – and a dependable supply of hot water – while simultaneously reducing household energy consumption and environmental impacts.
Known for its expertise in smart life solutions, LG has always emphasized the importance of innovation. LG’s core technologies, including the linear compressor (refrigerators), Direct Drive motor and TrueSteam technology (washing machines, Styler), and dual rotary and scroll compressors (air conditioners), have played a crucial role in the company’s rise to leadership in the global home appliance market. Looking ahead, the role of LG’s R&D division will be even more vital in discovering new electrification and smart home technologies. Through a commitment to excellence and a spirit of inquiry, LG will continue to lead the way to a better future.
By Oh Sai-kee, Head of LG Electronics Home Appliance and Air Solution R&D Center
# # #
1 A smart home and IoT device connectivity standard developed by the Connectivity Standards Alliance (CSA). Matter enables seamless interoperability between smart devices and platforms from diverse ecosystems.
2 Ambient computing refers to technology that is able operate invisibly in the background, blending into the environment and working automatically without users noticing its presence. Also referred to as “invisible computing” or “disappearing computing”.
link hidden, please login to view -
By News Reporter
Company Drives Strategic Growth With AI webOS, an Intelligent Platform
that Delivers Outstanding Customer Value and Unique User Experiences
SEOUL, Sep. 30, 2024 — LG Electronics (LG) last week held webOS Summit 2024 in Incheon, South Korea, sharing its strategic vision and future initiatives for expanding the AI webOS ecosystem and growing its platform business. Themed “Empowering webOS with AI,” the second webOS Summit played host to around 300 attendees representing 140 partner companies – including content developers, producers and providers – from 24 countries. The event also marked a major milestone: the tenth anniversary of the launch of webOS on LG smart TVs.
AI webOS plays a pivotal role in LG’s ambitious business transformation, shifting from a consumer electronics manufacturer to a Smart Life Solution Company. With a strategic investment of over KRW 1 trillion (USD 740 million), LG aims to significantly enhance the capabilities of its webOS platform and related businesses.
To achieve its strategic vision and elevate the value of its unique offerings, LG is continuously broadening the extensive selection of content and services accessible on AI webOS. The platform, which delivers exceptional experiences to LG TV users in over 180 countries, currently provides over 4,000 apps, including those for entertainment, home fitness, education and gaming.
This year, LG is reinforcing the reputation of AI webOS as an advanced gaming platform by adding a variety of new services and experience innovations. At present, the cutting-edge platform offers around 4,500 games across popular cloud gaming services such as GeForce NOW and Amazon Luna. To make gaming on its TVs even more responsive, LG has teamed up with MediaTek and Razer, leveraging new Bluetooth Ultra-Low Latency (BT ULL) technology to reduce input lag to an imperceptible 1ms when using a Bluetooth gaming controller. Demonstrated during webOS Summit 2024, this impressive responsiveness enhances the cloud gaming experience, giving users more precise control and making gameplay more immersive.
LG is also bolstering its competitive edge in content and services by actively seeking out and securing top industry talent. The company recently hosted a global hackathon to discover compelling new games and AI-powered content suitable for AI webOS and is also collaborating on game development with respected institutes of higher education, such as Sungkyunkwan University and New York University.
Furthermore, with the introduction of webOS Pay, LG has made it faster and more convenient for users to purchase content and services on AI webOS. The simple-to-use payment service contributes to the seamless, personalized shopping experience on LG’s intelligent platform.
Over the last decade, LG has sold a remarkable 220 million smart TVs and has consistently strengthened its webOS platform business through licensing agreements with an array of local and global companies. LG first made webOS available to other TV makers in 2021, and since then, the versatile platform has been adopted by over 400 brands. The company is now poised to further expand the webOS ecosystem via an array of webOS-powered automotive infotainment solutions, digital signage, smart monitors, gaming monitors and projectors.
Additionally, the webOS platform is shoring up LG’s strong competitiveness in the advertising business. In 2024, revenue generated by advertising and services on webOS is projected to exceed KRW 1 trillion, which represents a fourfold increase from 2021.
A significant contributor to this excellent performance is LG Channels, a free, ad-supported streaming service that provides over 3,800 channels and is now available in 29 countries. The company has augmented its already stellar offering of top-notch viewing options on its free service with the launch of LG Channels Showcase and LG 1 – new channels boasting a curated selection of premium entertainment. What’s more, LG is adding value to the user experience via the provision of AI-based ad solutions that make content recommendations even more relevant to user preferences.
With its Affectionate Intelligence vision for a more caring, empathetic and attentive AI technology, LG is continuously enriching and enhancing the customer experience. The application of Affectionate Intelligence allows webOS users to enjoy easier control as well as personalized content and service recommendations suited to their individual tastes and lifestyles. Through collaborations with innovative partner companies and the seamless integration of the latest technologies, LG is constantly refining its cutting-edge platform.
Along with informative presentations and demonstrations, webOS Summit 2024 featured an experience zone where attendees were able to see first-hand how powerful AI technologies are driving customer experience innovation on webOS. One of the many intelligent features offered on LG’s platform, AI Concierge employs voice recognition, search history and user data to provide customized app and viewing recommendations. Thanks to its ability to recognize different voices, AI webOS can take each LG smart TV user straight to their own personalized Home Screen without having to manually select their profile.
“Our webOS platform business continues to go from strength to strength based on close collaboration with our valued partners and an unrelenting focus on meeting the diverse needs of our customers,” said Park Hyoung-sei, president of the LG Home Entertainment Company. “Celebrating a decade of webOS innovation, and now enriching customer’s everyday lives with AI webOS, LG is accelerating its transformation into a leading media and entertainment platform company.”
# # #
link hidden, please login to view -
By News Reporter
Between September 6-10, LG showcased its diverse range of AI-powered home solutions, opening a new chapter of intelligent home living at its IFA 2024 booth. Under the theme of Experience, Affectionate Intelligence (AI) Home, the company presented its unique, AI-inspired vision of future living to visitors from around the world.
Designed in collaboration with Korean science fiction author Kim Cho-yeop, the expansive booth featured diverse experience zones curated to demonstrate how the company’s AI can be embedded into home life to elevate lifestyles in intelligent and distinctive ways.
Upon entering Hall 18 of Messe Berlin, visitors were greeted by the AI Home Gate, a massive LED media wall displaying the journey of LG AI, from the birth of LG’s AI Agent, FURON, to how it communicates with the world and enriches daily life.
After gaining a solid understanding of what Affectionate Intelligence is all about, visitors could explore how it makes everyday life more simple and convenient. Divided into several distinct lifestyle spaces, LG’s booth showcased how natural conversations with
link hidden, please login to view, can help manage every aspect of daily routines.
The first lifestyle space, “Second Youth Home,” showcased a new and more active lifestyle for retirees. The digital signage on the wall visualized how ThinQ ON customizes and takes care of home appliances depending on the user. For example, after recognizing certain phrases like “tennis lesson” on the user’s calendar, ThinQ ON automatically sets the washer and dryer to its “Activewear course” via Smart Pairing.
, employs AI DD technology to intelligently minimize water and energy usage based on each load. It also features Easy Control technology, which automatically selects cycles according to usage patterns and user preferences for maximum convenience.
The second lifestyle space, named “Smart Green Home,” showcased the ideal abode for families passionate about the environment and energy conservation. Among the many power-saving solutions on display, LG’s AI-enhanced Energy Storage System (ESS) analyzes energy usage patterns and weather forecasts to adjust its mode according to various conditions. Another highlight was the . With these devices – both inside and outside the home, connected to ThinQ ON – LG AI optimizes household energy usage in real-time and reduces energy bills by intelligently managing the power consumption of every connected device.
The next lifestyle space was the “Affectionate Home,” designed with children and pets in mind. It featured the company’s Self-Driving AI Home Hub, which can move freely around the home and interact with children through conversation. Its multi-modal sensing combines voice, sound and image recognition to change its expression according to various emotions, allowing it to respond to different situations with appropriate etiquette. The hub can move from room to room and control connected appliances and IoT devices, constantly making sure the environment is optimized for the little ones.
Not just a hub for home appliances, LG AI is an Affectionate Intelligence storyteller that boasts a deep level of emotional depth and understanding, enabling it to communicate and interact with users effectively. Through generative AI, the Self-Driving AI Home Hub can develop stories based on images drawn by the user, ensuring a unique bedtime story every night.
The next room demonstrated how LG appliances optimize the environment for pets and their owners. Once temperature and humidity sensors detect indoor air conditions, the LG DUALCOOL air conditioner can achieve the perfect temperature with airflow customized to suit the environment and personal preferences.
This zone also featured the AeroCat, a purifier designed specifically for cats. As every cat owner knows, cats love to sleep on devices and appliances. With this in mind, LG AeroCat can detect when a pet sits on top of it, stopping operation to provide a quiet place for a nap. And since weight can be an important indicator of heath, the AeroCat’s built-in weight sensor tracks the pet’s weight and alerts owners of any unusual changes via the ThinQ app.
“Delightful Home,” the final lifestyle space on display, presented a perfect setting for inviting and entertaining family and friends through a shared love of food. This zone highlighted LG AI’s ability to make cooking easier and quicker, with ThinQ ON providing menu recommendations and step-by-step instructions for numerous delicious dishes. Visitors could even learn some new skills by watching the “AI Talking Cooking Show,” a live cooking demonstration by chef Kristof Mulack, a culinary master who knows the best ways to customize LG’s AI appliances.
To let visitors focus on the technology that makes all these lifestyle spaces possible, the company also set up the “LG Affectionate Intelligence” zone. This area effectively illustrated the connectivity and expandability of the Matter-certified LG ThinQ ON, engineered to help users manage their entire smart home with a single device.
LG also shined a light on its AI legacy with a special “AI to the Core” space. Using a transparent OLED display, the company explained how its Core Tech has evolved into LG AI core tech. This lineup includes revolutionary AI DD and AI DUAL Inverter, both of which employ AI to enhance performance and deliver more precise control, resulting in new and improved levels of customer care and user experiences.
The final zone by LG was none other than the “Sustainability Lounge,” which provided visitors with an overview of the company’s latest efforts to promote sustainable living. Here, visitors could relax while learning more about LG’s ESG activities, including its use of recycled plastics in select products.
LG’s booth at IFA 2024 successfully delivered an insightful window into the LG AI Home. Stay tuned to to explore how LG AI can enrich daily life in the new era of AI.
# # #
-
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.